Profitability analysis for your firm
A profitability analysis answers the question of where in your firm profit is being lost. We look closely at four causes: services that do not match the chosen target groups, misallocated people and resources, unsuitable billing models and hourly rates that are too low. Added to that is a look at your client base and at the gaps in your sales chain — at firm level and for individual fee earners alike.
What sets us apart
- 1Causes, not symptomsWe name the reasons for lost profit one by one instead of pointing generally to low utilisation.
- 2A look at the client baseWe identify the profitable mandates and show how to retain them.
- 3Comparison with the marketWe set your client structure against comparable units in the market.
Our services
Where profit is lost
The four common causes- Wrong services. Offerings that do not match the chosen target groups.
- Misallocation. People and resources working in the wrong place.
- Model and rate. Unsuitable billing models and hourly rates that are too low.
Services and target groups
Aligned without changing field- Alignment. We align your services with your target groups.
- New services. We develop further offerings without you leaving your field of expertise.
- Fit. Offerings that do not fit weaken the profile rather than sharpening it.
Gaps in the sales chain
Firm level and individuals- Firm level. We show at which points of the chain mandates are lost.
- Fee earners. We carry out the same review for individual fee earners.
Analysing the client base
Spotting profitable mandates- Client base. We examine which mandates actually generate profit.
- Retention. For the profitable mandates we show how to keep them in the firm.
Your place in the market
Comparison with similar units- Client structure. We compare your structure with comparable units in the market.
- Market question. From that it follows whether you are addressing the right market and where the potential lies.
Frequently asked questions
What does a profitability analysis deliver in practice?
It shows where profit is lost: through services that do not match the target group, through misallocated people and resources, through unsuitable billing models and through hourly rates that are too low. We analyse your client base and identify the profitable mandates. We compare your client structure with comparable units in the market. From that it follows whether you are addressing the right market and where the potential lies.
Can we offer new services without leaving our field of expertise?
Yes. We align your services with your target groups and develop new services within your area of law. We also examine which offerings fit your target segments and which blur your positioning. Services that do not fit weaken the profile rather than sharpening it.
How do we find out whether our hourly rates are too low?
We tell you how the services in your practice areas should be priced. The basis is our experience advising law firms and patent attorney firms since 2004. That allows a judgement on whether you are undercharging.
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